China Resumes Crude Stockpiling Despite Hormuz Supply Disruptions

Calculations based on official data suggest China’s total crude availability reached 12.72 million barrels per day in July, comprising 8.41 million barrels in imports and 4.3 million barrels from domestic production. With refinery throughput holding steady at 12.51 million barrels per day, the surplus indicates that 210,000 barrels per day were diverted into storage. This shift highlights persistent weakness in domestic fuel demand and refining activity.

Analysts have monitored these flows closely, as China does not provide official inventory reports. The country’s massive stockpile, estimated at 1.2 billion barrels, remains largely intact five months into the Middle East supply disruption. While Beijing previously drew down reserves in May and June to manage the fallout from the Hormuz closure, the July rebound in imports—facilitated by eased fuel export restrictions—signals a return to aggressive stockpiling. This movement suggests that local refiners are struggling to process current supplies, forcing the excess crude back into the nation’s vast storage infrastructure.